Call options are contracts that allows you to buy a stock at a fixed price no matter what price it is in the future. You usually buy call options if you think a stock is going… to go up because you will still be able to buy the stock at a fixed lower price. Put options are contracts that allows you to SELL a stock at a fixed price no matter what price it is in the future. You usually buy put options if you think a stock is going to go down because you will still be able to sell the stock at a fixed higher price.(MORE)

Futures are contracts that allows you to buy certain commodities at a certain price by a certain date. Unless closed out, futures contracts are binding and the buyer of the co…ntract must be able to buy the commodities binded by the contract. Options are contracts that gives you the RIGHTS but not the OBLIGATION to buy certain stocks or commodoties at a certain price by a certain date. The main difference is, you can choose to ultimately buy the underlying asset or not, its not binding on the buyer.(MORE)

OptionsHouse is a broker dealer based in Chicago that offers a Web-based, near-professional trading platform -- specializing in trading options. Highly ranked, the platform fe…atures a unique "trade center" design that allows traders to make trades quickly without changing screens. Commissions are among the lowest on the Internet - stock trades are $4.95 and option contracts where your first five contracts are only $5 or $8.50 +.15/contract. OptionsHouse appeals most to experienced, self-directed traders and can be found at www.optionshouse.com. (MORE)

Options An option is the right to buy or sell the underlying commodity (e.g., stock) during a specific future time at a predetermined price. The …price or cost of an option is called a "premium". The factors which determine an option's value are: 1. Price of the underlying 2. Time to Expiry 3. Strike of the option 4. Volatility of the underlying Example: Stock Options on General Electric General Electric stock is currently trading at $34.00. You purchase a Call option ("right to buy") X shares of GE stock at $30.00 on 17 Nov 2006. Underlying = X shares of General Electric Stock Strike = $30.00 Expiry = 18 November 2006 Option Cost: $4.70 (1) At expiry: GE Stock is $40.00. You "exercise" your option: Buy the stock at $30.00, then sell the stock at $40.00, to make $10.00 on the exercise. Your profits are: $10.00 - $4.70 (cost of option) = $5.30 per share (2) At expiry: GE Stock is $28.00. You could buy the stock at $30, but then you'd lose $2.00 per share! Your options expire worthless, and you have lost the money you paid for the options. Volatility, Time Value If the price of GE is only $34.00 today, why would you pay $4.70 for the right to buy it at $30.00? ($34.00 strike - $30.00 current price = only $4.00!) The answer is that we don't expect a stock price to remain constant over time. This is where uncertainty comes into play. Uncertainty has value. A stock price is volatile. Think about it: would you expect GE share price in a month to be exactly the same price it is today? No. So there is a good chance that the price will be above $34.00 (or below $34.00). Along these same lines, the more time there is between now and expiry, the more uncertainty there is. Therefore, time and volatility play a big role in how an option is valued. Going back to GE, we can easily see the time value reflected in the price of an option with the same strike but different expiry. The extra month of time is worth $0.30 upfront cost. Underlying = X shares of General Electric Stock Strike = $30.00 Expiry = ** 18 November 2006 ** Option Cost: $4.70 Underlying = X shares of General Electric Stock Strike = $30.00 Expiry = ** 18 December 2006 ** Option Cost: $5.00 An option grants the holder the right but not the obligation to buy or sell the underlying stock at a fixed price by a fixed date. As options only cost a fraction of the price of the underlying stock, it is commonly used as a speculative leverage instrument. that you think what you think (MORE)

As the saying goes, you can't teach an old dog new tricks. Some tricks, however, are so simple that even an old dog or new puppy can learn them. Just practice any of the follo…wing a few times a day with your dog.(MORE)

In commercial contracts, there are situations of defaults/deadlock between the parties. In such a situation parties are given options, like put and call options as exit strate…gy. A call option is a mechanism wherein a party can call the another party to do something. Such kind of arrangements can specially be seen in shareholders/joint venture agreement where in case of default first party can ask the second party to sell its shares to first party. (MORE)

An option contract is basically a contract that give the holder the rights, but not the obligation, to buy or sell an underlying asset (Example stocks) at a predetermined …price (strike price) before or at a certain time in the future (expiration date) for a consideration (premium). Options are a derivative security. That is, the price of options fluctuated when the price of another security, moved. There are four specifications uniquely describe any option contract: 1) The type (call or put), 2) Underlying stock name, 3) Expiration date and 4) Strike price A stock options contract gives the owner the right to buy or sell a specified number of stocks (generally 100) of a company. The options holder can choose to exercise and convert the options to the company's stock when it is to their advantage. A call option gives the holder the right, but not the obligation, to buy a fixed number of shares of a company at a specific price before the option's expiration date. A put option gives the holder the right, but not the obligation, to sell a fixed number of shares of a company at a specific price before the option's expiration date As an example, the term "ABC June 09 75 call" is an option to buy (a call) 100 shares of ABC stock (Underlying stock name) at $75 (Strike price) per share. The option expires in June 2009 (Expiration date). The price of a listed option (premium) is quoted on a per-share basis. Thus if the price of ABC June 75 call is quoted at $3, buying the option would cost $300 ($3 x 100 shares), excluding commission charge by brokers. In short, options are just another form of investment that can be bought or sold just like a stock, a commodity or a bond. (MORE)

A financial derivative that represents a contract sold by one party to another party The contract offers the buyer the right, but not the obligation, to buy or sell a security… or other financial asset at an agreed-upon price during a certain period of time or on a specific date. It refers to an option to purchase real estate and when recorded in the land records creates an encumbrance until it is released by the parties, extinguished by time or the terms are carried out by a sale.(MORE)